A former senior political figure is said to have rejected claims that he sexually assaulted one of the hundreds of children who were abused over two decades in Welsh children's homes.

A news story based on the claims made by the alleged victim is due to be broadcast by BBC Newsnight.

The claims are understood to be that the individual was raped by a former senior Conservative official from the Thatcher era. However, the former official has "vehemently denied" the allegations, according to Channel 4 News. The individual was not named in the report.

Michael Crick, political correspondent at Channel 4 News, said that the man denied that he had ever engaged in paedophile activity and planned to sue if he was named.

A three-year, £13m investigation by Sir Ronald Waterhouse QC made a series of recommendations in 2000 after finding systematic abuse, a climate of violence and a culture of secrecy existed in dozens of children's homes in north Wales.

In one of Britain's worst ever child abuse scandals, hundreds of children were physically, sexually or emotionally abused in care homesbetween 1974 and 1990.

The Waterhouse inquiry heard from 240 people abused as children in 40 homes but it was thought that there were hundreds more victims.

The report mentioned 200 people who were abusers, alleged abusers or had failed to protect children in the homes, although not all of them have been named.

A Labour MP, Tom Watson, claimed in the House of Commons on Wednesday last week that a "powerful paedophile network" may have had links to a former prime minister, No 10 and parliament.

He said that there was "clear intelligence" suggesting a notorious group was connected to a former Number 10 aide.